The Effect of Industrial Character on Innovational Strategic Choices: Study on Electronic Industry and Petroleum and Chemical Industry

摘要

This paper concerns the effect of industrial characters on firm innovation strategic choice in China that is in a transition to a market oriented economy. Through an investigation of over 541 public corporations during a period of 2000 - 2005, we found that the firms in new industries, like Electronic Industry, prefer self-innovation by internal investment and product innovations. However,the companies in traditional industries, like Petroleum and Chemical Industry, will prefer co-innovation and process innovations. The explanation for such complex relationship between industrial characters and firm innovations can be sought from an institutional theory.